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Trade and Industry Department The Government of the Hong Kong Special Administrative Region
Brand Hong Kong - Asia world city
MY COLOUR

Commercial Information Circulars

24-hour hotline : 23 922 922

e-mail address : enquiry@tid.gov.hk

Ref : EIC 111/3/10/1

31 May 2005

Dear Sirs,

Commercial Information Circular No. 188/2005

US :Market Economy Inputs Practice in Antidumping Proceedings Involving
Non-Market Economy Countries

Our Commercial Information Circular (CIC) No. 119/2005 of 8 April 2005 reported the two modifications made by the US' Department of Commerce (DOC) in its antidumping investigation practice involving non-market economies (NMEs). As part of an ongoing effort to modify its NME policy and practice, DOC is considering options to change certain aspects of its current policy and practice regarding market economy input prices and invites public comments on the options. A copy (pdf format) of the FR notice outlining the details is appended to this circular for reference.

DETAILS

  1. Under the current practice, in an NME antidumping proceeding, DOC bases its calculation of normal value on the NME producers' factor of production, to the extent possible, using prices from a market economy that is at a comparable level of economic development and that is also a significant producer of comparable merchandise. However, if an NME producer sources an input from a market-economy supplier and pays in a market-economy currency, DOC will use the average input price paid by the producer to market economy suppliers to value all of the given input used by the producer, subject to three conditions. First, the volume of the imported input as a share of total purchases from all sources must be "meaningful", which is determined on a case-by-case basis. Secondly, this average import price must reflect bona fide sales. Thirdly, DOC disregards all inputs it has reason to believe or suspect might be dumped or subsidized.
  1. DOC is considering two broad approaches to change the current practice. The first approach would use market economy prices for inputs, but would limit their use to the valuation of the imported portion of the input only. The second approach would use market economy import prices to value an entire input if it found the quantity of imports to be meaningful, but would apply certain criteria for determining what constitutes a "meaningful" amount. DOC is seeking the public's views on the options and comments must be sent to DOC by 24 June 2005.

ENQUIRIES

  1. For enquiries concerning the content of this circular, please contact the undersigned at 2398 5682.




Yours faithfully,


(Ms. Amanda Kwong)

for Director-General of Trade and Industry



Note : While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same.